(Resource News International) — Winnipeg Commodity Exchange grain and oilseed
futures closed Thursday’s session mixed with canola lifted by gains in Chicago Board of
Trade soyoil futures and friendly technical signals, brokers said.
Canola saw heavy trade, with much of the activity comprised of intermonth
spreading with commercials rolling November contracts into the January futures. There was also
some fund activity in the spread trade.
The total canola volume was estimated at 14,400 contracts, up from Wednesday’s
12,914 contracts, including an estimated 9,152 contracts involved in the spread trade.
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Canola rallied on improved crush margins, as the surging soyoil futures market
made crushing more profitable, traders said. Crushers were strong buyers early in the
session as a result. Friendly technical signals prompted good levels of speculative buying
as commodity funds were good buyers in the January contract later in the session. Farmer
selling continued on a scale-up and contributed to the friendly market tone.
Capping the advance was the very strong Canadian dollar and the sluggish pace to
fresh export demand.
Crushers were strong buyers early giving way to fund buying later in the session.
Routine exporter pricing was noted. Commodity funds were felt to have purchased 1,000
was mainly commercials with scale-up elevator company hedging noted. Locals and
commission houses appeared on both sides in reaction to the gyrations in the U.S. soybean market.
Western barley futures posted losses in moderate trade. Bearish technical signals,
ideas that barley’s bullish tone has now faded and the very strong Canadian dollar,
making U.S. corn imports cheaper, weighed on the market.
Much of the selling was commission house liquidation although elevator company hedging was also evident. The buying was comprised of end-user pricing and speculative short covering.
The total barley volume was estimated at 1,137 contracts, up from 407 contracts on
Wednesday. Intermonth spreading enhanced the level of activity.
Feed wheat futures declined in light trade as liquidation selling and sluggish demand continued to send the market down, traders said.
“We seem to be seeing an orderly exit of the (grain) trade from feed wheat futures,” said a broker.
“With open interest so small and such poor liquidity, there’s no spec activity” in feed wheat, he added.
The total feed wheat volume was estimated at 190, up from 128 contracts on Wednesday.
